The Australian Taxation Office (ATO) has been concentrating on limiting the expansion of the cryptocurrencycurrency industry as a means of avoiding paying taxes. An estimated 2 million accounts are being investigated, and the ATO is attempting to identify individuals who have not accurately disclosed their cryptocurrencycurrency transactions.
Instead of being treated as foreign exchange input, digital currencies are recognized as taxable assets in Australia. As a result, owners of these assets or cryptocurrencycurrency traders must pay capital gains tax on any profits made from selling them or converting them into other forms of money.
The ATO has conveyed the importance of adhering to the law when it comes to taxes, particularly in light of the swift advancement of digital assets’ technology.
ATO Seeks Crypto Exchange Data for Audits
The ATO reportedly went to cryptocurrencycurrency exchanges and requested transaction logs and account holder data. The information can include private information like bank account details, wallet addresses, and the kinds of coins exchanged, as well as date of birth, phone numbers, and social media accounts.
The measures used by the ATO are essentially reiterations of similar measures taken in the past by tax authorities worldwide. Tax evasion involving cryptocurrencycurrencies has become a top issue for the Canadian Revenue Agency (CRA), with $54 million seized from transactions that were not disclosed.
Also read: Thailand Grants Tax Exemption for Crypto Investment Token Earnings
